The Vietnam National Textile and Garment Group (Vinatex) is targeting export turnover of $2.6 billion this year, representing growth of 10 per cent.

A report released at its annual general meeting on June 14 put growth in Vietnam’s major textile export markets at 7 to 10 per cent last year, with Vinatex’s export turnover standing at $2.37 billion.

The group, however, does not expect many significant changes in the textile sector this year as free trade agreements (FTAs) are yet to come into effect. Growth is expected at 8 to 10 per cent with export turnover at $29.5 billion to $30 billion.

“The US, Japan and the EU will remain key markets for Vinatex,” Ms. Pham Ngoc Han, Head of the Shareholder Relations and Information Communications Department at Vinatex, told VET.

The group also aims to develop the original equipment manufacturer (ODM) - free-on-board (FOB) model as a breakthrough in increasing its competitiveness domestically and with textile exporters in other countries such as China, India, and Bangladesh.

Last year it established the Supply Chain Development Center (SCDC) and two corporations in the north and the south of the country to create a supply chain from raw materials to finished products, making the most of the production capacity in its subsidiaries.

Vinatex has recently put two projects into operation - the Phu Hung Plant in Hue and the Kien Giang Plant in the Mekong Delta province of Kien Giang.

“Another project, Yarndyed Plants in Long An province, will produce fabric and has investment of VND838 billion ($37.7 million),” Ms. Han told VET. “The first phase has been completed and the second phase will be completed in the third quarter.”

CEO Mr. Le Tien Truong told its annual general meeting that the group will implement a range of solutions to record growth 10 per cent this year, including supporting its subsidiaries to expand markets and improve market share and establishing an FTA research team to develop business plans and avoid internal competition.

Vinatex has now 85,000 employees earning an average monthly income of VND6.3 million ($284). Last year its industrial production value stood at over VND36 trillion ($1.62 billion), revenue VND39.5 trillion ($1.77 billion), and pre-tax profit VND628 billion ($28.2 million).

Mr. Truong previously told VET that Vietnam will remain a textile and garment manufacturing and product center for the world for the foreseeable future.

The government will sign bilateral and multilateral trade agreements with the largest markets for textiles and garments. “This means that the potential for development is great, with a remaining issue being how to seize the opportunity for businesses to thrive and hold a strong position in the global textile and garment industry,” he said.

However, “the garment industry knows full well the advantages and disadvantages of being a part of the TPP,” he said.